Finance Committee on Feb. 3rd, 2026

[The Chair, Liberal, Karina Gould]

I call this meeting to order. Welcome to meeting number 21 of the House of Commons Standing Committee on Finance.

Pursuant to the order of reference of Monday, February 2, 2026, the committee shall commence consideration of Bill C-19, an act to amend the Income Tax Act.

I would like to welcome Minister Champagne. He is joined by the assistant deputy minister of the tax policy branch, Maude Lavoie.

With that, Minister, you have five minutes for opening remarks. Please go ahead.

[François-Philippe Champagne, Liberal, Minister of Finance and National Revenue]

Thank you, Madam Chair.

Colleagues, it is a great pleasure to be with you this evening.

I would like to thank Ms. Lavoie for joining me. She does extraordinary work at the Department of Finance.

I am pleased to speak today to begin the committee's study of Bill C‑19, Canada groceries and essentials benefit act.

The fact that we're here today is, in my view, a credit to what the House can accomplish when we work together for Canadians.

I want to thank Mrs. Lantsman for putting the motion forward so that we can move forward together.

As a minister, I've seen first-hand how bills can become sidetracked and sometimes bogged down via the legislative process or because of partisan politics. In this case, however, the fact that all parties, really, came together to unanimously expedite Bill C-19 demonstrates a willingness to have a serious response to a serious moment. Canadians, after all, expect nothing less of each and every one of us.

I would like to thank every member of this committee and, in fact, every member of the House for putting partisanship aside and Canadians first.

Canadians watching at home will know that Bill C-19 is part of our response to a rapidly changing and increasingly uncertain world, one that is leaving economies, businesses and workers under a cloud of uncertainty.

Canada's new government is focused on what we can control. That is why today, in Bill C‑19, we are proposing measures that will enable us to build a stronger economy and, certainly, a more resilient economy.

We do know, however, that our generational investment plan presented in budget 2025 is going to take a few years, and we also recognize the need for more immediate and targeted measures to help Canadians who are under the pressure of daily expenses and who need immediate support.

We also know that while inflation has slowed since its postpandemic peak, food inflation remains persistently high. This is due to several factors: global supply chain disruptions caused by tariffs, geopolitical upheavals and, of course, climate change, which have all contributed to higher food prices.

Once again, we are focused on what we can control. I'm pleased to report that, while we tackle structural issues, the Canada groceries and essentials benefit will put hundreds of dollars in the bank accounts of more than 12 million Canadians. It will deliver real help to those struggling with the cost of groceries and everyday essentials.

This new benefit will replace the GST credit, but more importantly, it will be more generous.

The GST credit, as I mentioned, is a tax-free payment that is made four times a year to help low and modest-income individuals and families. This is one way to make our tax system fairer. However, for many Canadians, because of the rising cost of food, this assistance is no longer enough.

What we are proposing is to increase this benefit by 25%. In addition, this year we will add a one-time payment equivalent to 50% of the current benefit.

What people needed was immediate support. That is why our government will offset the rising cost of groceries, which exceeds the overall inflation rate since the pandemic and averages $782. That is precisely what we are trying to offset in order to help Canadian families. At the end of the day, it is going to make a significant difference.

Right now, a person living alone who is eligible for the GST credit can receive a maximum of $543 per year. The same person would get approximately $950 in total from the one-time payment during the 2026-27 benefit year thanks to the changes we are proposing. For a couple with two children, the amount would increase from approximately $1,086 to $1,890. This is real money that will make a tangible difference in the lives of millions of Canadians.

All of this, Madam Chair, is guided by an understanding that affordability is a central measure of a country's economic success. In fact, we are already seeing progress. Wages are growing faster than inflation and have been doing so for 33 consecutive months.

Some expenses, such as gas prices, child care fees and cellphone bills, have come down.

For the time being, the cost of groceries and other essentials remains high, and that is why we are taking targeted and responsible action.

In conclusion, we want to make sure Canadians feel the benefits of our country's economic growth and that Canadians feel real benefits in their wallets and at their kitchen tables. That's our plan.

I want to thank members for voting unanimously in favour of the motion.

We'll take questions.

[The Chair, Liberal, Karina Gould]

Thank you, Minister.

We will begin our round of questioning with Ms. Lantsman for six minutes, please.

[Melissa Lantsman, Conservative, Thornhill, ON]

Thank you.

Thanks for coming, Minister.

I want to take you back to 2023. You were a minister; there was a Liberal government, a lot of the same things. You held a summit, and five of the largest grocers agreed to help “stabilize food prices”. That's what you said.

Can you tell me how much Canada's overall food inflation has gone up since that date?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

I would say, first of all, thank you for putting the motion forward. I think this is welcomed by Canadian families.

This is tough work, as you know, and this is work in progress. That's why today you see we're taking concrete measures to help Canadian families—

[Melissa Lantsman, Conservative, Thornhill, ON]

Minister, with all due respect, you took concrete measures before. In fact, they were the exact same concrete measures.

It's 7.83%. You promised “price stability”. Those are words from 2023, when you were a minister in the Liberal government. Is a 7.83% increase in food prices since this promise your definition of stability, yes or no?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

I would say that what we did was unprecedented in the country's history. You may recall that I was, I think, the first minister of industry to call the CEOs of the major grocery chains in Canada, and I asked them—

[Melissa Lantsman, Conservative, Thornhill, ON]

That's correct. Food prices have gone up since then.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Well, I would say competition is the real answer. We have been driving competition in the country, because what we need is more competition.

I would say, if you allow me, that we also need structural measures. I had the opportunity to talk to L'Union des producteurs agricoles in Quebec and others, and what they would tell you is that there are structural things. That's why you see there's not only the benefit, but we're also touching structural things such as greenhouses because we just need to produce more in Canada.

[Melissa Lantsman, Conservative, Thornhill, ON]

A number of times in 2023, you said things like “lower prices”. These are your words. You're going to “stabilize food prices in Canada”. You're going to give us “less consolidation, more competition, lower prices”. Those are all your words from when you were minister.

I want to know, which thing is lower today than it was in September 2023? Is it peppers? Is it lettuce? Is it beef? Is it coffee? Is it infant formula? Which thing? Just say one thing.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

As you would know, food inflation is a challenge in pretty much all the G7 countries. I would—

[Melissa Lantsman, Conservative, Thornhill, ON]

[Inaudible—Editor]

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

No, I'm just providing background.

For example, currently, Canada sits lower than some of our peer countries: lower than the United States, lower than Germany, lower than the United Kingdom. There are a number of factors.

Let me just provide background to Canadians who are watching. Canada imports about 30% of our produce. When you get to winter, it's about 80% to 90%. That's why we have structural issues to deal with. We have currency issues. We have climate change issues. We have trade issues. That's why—

[Melissa Lantsman, Conservative, Thornhill, ON]

You can blame all the outside factors you want.

Minister, you brought this summit to Ottawa. You said that you would stabilize prices. You said that you would lower prices. Since your grocery summit, peppers have gone up 41%, lettuce 39%, coffee 33% and beef 27%. Which of these increases did your plan actually prevent?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

I'd say it's a work in progress. I benchmark with our G7 colleagues. I happen to sit at the G7 finance ministry, and I would say—

[Melissa Lantsman, Conservative, Thornhill, ON]

How is that progress? What does success look like in your department?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

—it's challenging everywhere, but the structural measures that we're presenting today are going to help produce more in Canada and increase food security. Immediate expansions, for example, for greenhouses and making sure we can support abattoirs and the food supply chain in Canada will help.

[Melissa Lantsman, Conservative, Thornhill, ON]

I'm going to interrupt you because I have no time and you're not really answering the questions with numbers.

If prices have risen by 43% after government intervention, what would failure have looked like? Is it 50%? Is it 60%? What are the benchmarks in your department that say lower prices need to be this much or stability needs to be this if everything is going up and we are the leader in the G7 on grocery inflation?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Well, I would challenge you with the data on that. If you look from 2019, you will see that the data does not support your statement.

[Melissa Lantsman, Conservative, Thornhill, ON]

I'm looking from when you yourself said that you would stabilize prices.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

I'm just telling you, because I happened to look at the G7 numbers, that we do benchmark with our G7 peers. If you look at Canada.... I'm happy to share the chart with you, but that's not what makes a difference for Canadians. What makes a difference for Canadians—

[Melissa Lantsman, Conservative, Thornhill, ON]

Wait a second: Grocery prices don't make a difference for Canadians?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

I would say that what makes a difference to Canadians is being humble in this place. Humility should be part of our discourse. Canadians are smart.

Canadians understand that a number of issues go around grocery inflation. It's not unique to Canada. They have the same thing in the United States.

What I'm saying is this: They know that, because you import, you have fluctuations in currency. They know about the issue of climate change. They know about the issue with respect to supply chains. They know that you have more competition—

[Melissa Lantsman, Conservative, Thornhill, ON]

With all due respect, Minister, you've been in government for 10 years.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Yes, but—